"In particular, the sector is pleased the Government has listened to its calls for a 'stepped-care' approach to mental health services," he said.

That means individualising care for each patient and ensuring people receive adequate levels of care.

But some health experts are disappointed with the lack of focus on older Australians.

Professor Nancy Pachana, a clinical gero-psychologist at the University of Queensland, said the report failed to address mental health needs in nursing home residents.

"The response doesn't mention older Australians, which by 2030 will number over 5.7 million," she said.

Australian Institute of Health and Welfare reports have found more than three quarters of nursing home residents have a mental illness.

"Furthermore, nearly half of older persons admitted for the first time to aged care had symptoms of depression, a quarter with moderate to severe symptoms," Professor Pachana said.

Suicide prevention overlooked: expert

Professor Helen Christensen, director of Black Dog Institute and chair of NHMRC Centre for Research Excellence in Suicide Prevention, said the Government had acknowledged the very powerful evidence that demonstrates mental health programs need to be fully integrated into day to day life.

"A key component of the stepped care mental health released by [the] Government today is to provide mild to moderate care through a digital portal - offering e-therapies, help lines and self help programs," she said.

But she said the sector was disappointed that the Government had not taken a stronger approach to suicide prevention.

"Every day, around seven Australians take their own lives. With this serious health issue, considerable evidence-based programs are available to be rolled out immediately," she said.

"We hope that the integration of suicide prevention programs into localised initiatives that simultaneously involve schools, health care providers, hospitals and emergency services will provide some benefit in this area."

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